INTRODUCTION:

The wage rate is amongst the most important means to ensure livelihoods of people and

income distribution among citizens in any modern society. Wages are also a powerful tool for

improving equality and equity in an economy and societal sustainability. Some results which are

produced by higher wage rate are job satisfaction, productivity of labor and labor retention.

Job satisfaction is a really important factor for an employee. If the employee has a good wage

package he would be happy in continuing that job because he is satisfied by his job. Similarly

with the high wage package employees get motivated and their productivity level increases,

they become more efficient in their work because they know if they will do their work

efficiently they will get high wage package. Job satisfaction leads to labor retention, labor is

satisfied by his job and doesn’t search for any other job.
LITERATURE REVIEW:

In 2012, job search magazines Jobat and Vacature each administered job satisfaction surveys in

Belgium. Jobat’s survey, Jobat Loonwijzer 2012 (in Belgian), questioned around 33,000 Belgian

employees, and therefore the Vacature survey, Vacature Salarisenquête 2012 (in Belgian), had

around 45,000 participants. The findings of both surveys are very similar. The typical gross

monthly salary in 2012 was €3,133 consistent with Vacature, and €3,180 consistent with Jobat.

Half the respondents earn €2,800 or less. About 80% of employees receive a 13th month bonus,

while about 1% also receive a 14th month bonus. On the average, workers have 28 holidays a

year.

International institutions, the chemical sector, the pharmaceutical sector and therefore the

utility sector are those with, on the average, the very best wages. Rock bottom are within the

retail and therefore the catering sectors. Larger companies usually pay higher salaries than

smaller companies. Because the Brussels region features a relatively high share of the best-

paying sectors and enormous companies, the mean wages are higher in Brussels. They stand at

€3,579, compared with the Flemish region where the mean is €3,065, and therefore the

Walloon region where it's €2,840.

An employee receives, on the average, four supplements to their gross salary. Lunch vouchers

got to 64% of the workers who received extra benefits. This was followed by insurance (55%)
and insurance (46%) because the commonest benefits. There was limited use of additional

bonuses or variable salaries – 74% of the workers receive a hard and fast remuneration.

About half the respondents were dissatisfied with their salary, saying it wasn’t in proportion to

their workload. On the average, they said their salary should rise by €305 to be in proportion

with the work they did. Just one said they were overpaid. Workers in sectors that were less

well-paid were most unhappy with their earnings compared with their workload. The catering

sector (63%) and therefore the distribution and retail sector (60%) had the very best number of

unhappy workers. However, even within the health care sector where levels of pay generally

matched the general average, about 60% of workers said they were unhappy. Employees within

the utility services were most pleased with the dimensions of their wage compared to their

work load, with only 28% saying they were dissatisfied. The working status is additionally

important. Blue-collar workers as a gaggle had higher levels of dissatisfied employees (61%)

than the white-collar group (51%) or executives (37%). The results also showed the proportion

of unhappy workers was higher among women (56%) than among men (45%). However, men

who felt their salary was too low said their wages needed to be increased on the average by

15% to form them happy.

The feeling of not being paid fairly in reference to workload features a negative impact on

motivation, consistent with the survey. Employees unhappy with levels of pay were more

inclined to vary jobs (37%) than employees who felt their salary was fair (18%). On the opposite

hand, employees were prepared to trade off lower salary against certain benefits, including a

better retirement payout (40%), a very interesting job (28%), employment near home (26%);
Extra holidays (24%), a (better) company car (23%), extra job security (21%) and feeling less

controlled at the workplace (10%).

Wages level is a crucial argument in terms of job mobility. Quite one third of the respondents

(34.7%) give ‘a higher wage’ as a reason for his or her intention to vary jobs. Other important

factors for Belgian workers are ‘more challenges within the job’ (20.5%) and ‘a better working

atmosphere’ (12.4%). Intention to vary jobs is highest within the retail and therefore the

catering sector, while the general public services had the littlest number of employees meaning

to change jobs. There’s a transparent link between wage satisfaction and therefore the

intention to vary jobs in those sectors.

REEFERENCE:

https://www.eurofound.europa.eu/publications/article/2013/impact-of-salary-on-job-

satisfaction by Jobat Loonwijzer and 

Vacature Salarisenquête in 2012

https://openknowledge.worldbank.org/handle/10986/26468 by Del Carpio, Ximena V.; Pabon,

Laura M.. 2017

https://academic.oup.com/qje/article/134/3/1405/5484905 by Doruk Cengiz, Arindrajit

Dube, Attila Lindner, Ben Zipperer in 2019

CONCLUSION:

The objective of our study was to study the impact of wage rate on labor force and to

determine whether wage rate has an impact on labor force. The research was conducted to
analyze the perception of people in the society about the impact of wage rate on labor force.

Data was collected through questionnaire from different university students, job persons and

business owners. Our results showed that there is a direct relationship between wage rate and

labor force. People believe that high wage rate have good impact on job satisfaction, job

retention and productivity of the employee.